Following the announcement, on August 5, 2011, of the establishment of three Bridge Banks, namely: Mainstreet Bank Limited, Keynote Bank Limited and Enterprise Bank Limited, the Nigeria Deposit Insurance Corporation (“NDIC”) and the Asset Management Corporation of Nigeria (“AMCON”) after intensive negotiations through the night, are pleased to announce that they have signed an agreement on August 6, 2011, for AMCON to acquire the three Bridge Banks. Click here for the full text of AMCON statement

The acquisition and transfer of ownership has been effected through a subscription agreement with each of the three banks.  By the subscription agreement, AMCON will become the owner of the three banks, and will provide sufficient capital to restore the banks to the level of capital adequacy stipulated for their operations.

With the successful sale of the Bridge Banks, the NDIC has fulfilled its primary objective of ensuring the depositors in the banks do not lose their funds, in line with the avowed commitment of the Federal Government, and Mr. President in particular, that Nigerian depositors do not suffer the trauma and suffering associated with bank failures.

The capital provided by AMCON through shares subscription will strengthen the banks’ liquidity to enable them carry on business and meet all their obligations as they fall due.  Consequently, the banks are in position to repay the loans obtained from the Central Bank of Nigeria (CBN).  The liquidity position of the banks is further enhanced by the willingness of the CBN to extend the guarantee of their interbank obligations until December 31, 2011.

AMCON has identified independent and credible persons with significant and required experience to fill the board and senior management positions for the banks and will be seeking the approval of the CBN for their appointments.  AMCON is confident that the new teams will manage the banks to establish strong market positions and effectively compete in the Nigerian banking sector, providing quality service to their customers and value to shareholders.

Following the successful sale of the three bridge banks, the NDIC is proud of the action taken to safeguard depositors’ funds, pursuant to the NDIC Act.  The Corporation shall continue to work with the CBN and other Regulatory agencies to ensure the continued stability and confidence in the Nigerian financial system.

Signed:

Management

NIGERIA DEPOSIT INSURANCE CORPORATION